Prepare journal entries for each of the transactions

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Question - Rocky's Outdoor Adventures (ROC) is a retailer of sporting equipment and outdoor apparel. The following transactions occurred for ROC during the month of August 2020:

Date Transaction Description

August 5 Purchased $7,200 of inventory on account from Champ Enterprises. The invoice terms were 2/15, n/60.

August 6 Paid $156 to ship the goods that were purchased on August 5 from Champ Enterprises.

August 6 ROC determined that $600 of the goods shipped on August 5 were damaged. ROC returned these goods to Champ Enterprises.

August 11 Sold $13,300 of products to Chatterly Collegiate Institute. The invoice terms were 2/10, n/30. The merchandise had a cost of $6,800 to ROC.

August 12 Purchased $640 of off ice supplies from North Co. with cash.

August 15 Sent Chatterly Collegiate a credit memo for $400 for goods that did not meet the customer's specifications.

August 18 Paid the balance owing to Champ Enterprises from the August 5 purchase.

August 21 Received a cheque from Chatterly Collegiate in full payment of their account.

August 31 The merchandise inventory account had an ending balance of $67,400. A physical count of inventory was done and an inventory balance of $65,775 was reported.

Required - Prepare journal entries for each of the above transactions, assuming that ROC has a perpetual inventory system.

Reference no: EM132795966

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